How To Build Wealth In 5 Steps – The CLIMB To Wealth
Jason 0 Comments Retire Wealthy
What's up everybody, I'm Jaspreet Singh,
and welcome to the Minority Mindset. If you had to climb a mountain,
how would you do it? You'd probably come up with a plan and then start climbing,
one step at a time. Well building wealth is just like
climbing a mountain. If you want to become wealthy, you have to come up with
a plan, and then you have to climb to wealth, one step at a time.
And, in this case, you are going to be climbing to wealth in five steps:
C-L-I-M-B but, before we get into what each of these five steps are, make sure you
hit that thumbs up button below, and subscribe to The Minority Mindset YouTube
channel, that way you don't miss our new videos every single week, and make sure
you hit that little bell too, that way you actually find out when our new videos are
released. Step number one: 'C', create your financial
base. Okay, we talk about real estate investing a lot on this channel, so if
you wanted to build a house, what would you do first? Design it? Okay yeah, but what's
after that? Get the money to build the house? After that? I don't know, just tell
me what it is.
You have to lay a foundation; the bigger you want your
house to be, the stronger your foundation needs to be. So, if you want to build a
big house, you need to lay a strong foundation first, otherwise the house is just
going to fall over like a house of cards. OOH! My house is falling! When it comes to
your wealth, you need to create your financial base first, and you can do that
by doing three things: First, save $2,000, second, pay off your high interest debts,
and third, put aside $500 to start investing. You need to do these three
things as fast as possible. You need to create your financial base in this order
because, if you start paying off your credit card debt first, and then your car
breaks down, well now you're going to have to go back into credit card debt to fix
your car, because you didn't save any money yet.
It's like taking one step
forward and then two steps back– ooh–wards.
Once you create your financial base, now it's time for step two: 'L', lead your
money. Here's how the majority of people's financial plans look: you make money, and
then, you spend money, and then, you wonder where all your money went. No
more doing that. Instead of letting your money rule you, you need to be in charge
of your money, by telling your money where to go. Okay money, it's time for
you to go to the gym. The simplest thing you can do is follow my 75-15-10, or
50-30-20 plan. My 75-15-10 plan is for people that have people relying on them
financially, and my 50-30-20 plan is for young people, who don't have a lot of
financial responsibilities. The way it works is, every dollar you make, is going to
be divided up into three different parts: seventy-five cents or fifty cents of
every dollar you make is going to be what you can spend, maximum, fifteen cents or
thirty cents of every dollar you make is the minimum you're going to be investing,
and ten cents or twenty cents of every dollar you make is going to be the minimum
you're saving.
Again, you're either going to follow 75-15-10 or 50-30-20. You can
think of this plan, kind of like creating a three-headed funnel, where every dollar you
make, is going to flow through this, and your money's going to be divided up into,
either your spending money, your investing money, and your savings money.
So, every time you make a dollar, it's going to have to flow through this funnel.
Now that you know how to lead your money, it's time for step three: 'I', interest-free
living. PSST! Let me let you in on a little secret, saving is losing. Every single day,
the Federal Reserve or the Fed is printing more money, more money, more
money, which is diluting the value of our money, which makes the value of our
dollars, and our savings, go down.
That's why, when you save your money, you're
slowly becoming poorer, and you don't even see it happen. This is what inflation is.
So—uh—then, why are you telling me to save my money Jaspreet? Well, unlike
what the majority of people have told you, your savings are not there to make
you wealthy. That's what your investments are for. Your savings are kind of like a
shield, it's there to protect you, from going into debt, when an emergency
happens. Investors, this—is—financial— EDUCATION! And that's why you want to be
saving your money strategically.
If you are saving your money, just to save it,
you are saving your money wrong. Sorry, after you save six months worth of
expenses, stop saving, that's it, you're done saving. Now, what I want you to do is,
I want you to take this money that you were saving, and move it here, to your
investments, this way now, you have more money, going into your funnel, and so, you
can build your wealth quicker.
If you still have leftover debt, like a student
loan or mortgages, now, it is up to you to decide, if you're going to use your
investing money, to pay down your debt or to invest the traditional way. There
really isn't just one right answer for this, it depends on you. If you want to
live large, and drive fancy cars, and go on fancy vacations, then you're going to
need to make more money, which means you have to take more calculated risk, which
means you have to invest more money. But, if you just want to live financially
stress-free, then use your money to pay down your debt, this way you don't have
to worry about your expenses.
And, if you want to make the smartest money
decisions, you have to pay attention to what's happening around you, which is why
we created the free Minority Mindset newsletter, where we first break down the
top finance, and business news, and then we show you how this news affects your
wallet. This newsletter is completely free, and you can subscribe to it by
clicking the link up here, or by clicking the link in the description below.
Oh!
baby! We're moving! Now it's time for step four: 'M', multiply your income. The issue
that I have with most financial plans, is that they only focus on one thing:
spending less. Knowing how to live below your means is very, very important, but
that's just one side of the financial coin. If you really want to fuel your climb
to wealth, then you're going to have to earn more money. Let me come back to this
three-headed-funnel for just a minute. If you make—$100, that means that you get to
spend—$75, you get to invest—$15, and you get to save—$10. Not bad. You get to
go to a nice dinner, you can invest in one of those online apps, and you have a
little bit of savings. But, if you earn more money, and now, instead of making a
hundred dollars, you make—$100,000, now things are a little bit different. You
don't get to spend just 75, you get to spend—75,000, you get to
invest—15,000, and you get to save—10,000.
Now, you can drive a better car, you can
go on nicer vacations, you have more investment options, and you're building your
savings much, much quicker. But Jaspreet, how can I go from a hundred to a
hundred thousand? The great thing about being alive today, is that, it is more
accessible than ever, to earn more money, because of the Internet.
I mean, I'm here on YouTube making one penny, every time somebody watches this
video. Thank you for your penny. Now, you don't have to be on YouTube, you don't
even have to start your own business, and if you want to learn more about this,
I'll link a couple of videos for you to watch, about how you can earn more using
the internet, in the description below.
Now, finally at the top of the climb to
wealth mountain, is step 5: 'B', be great. As you are on your climb-to-wealth
journey, there are two things you need to do, to be great. First you need to be
great for your family, by protecting your ass—ets. When people realize that you have
money, they're going to try to take their hand, put it in your pocket, and take some
of it for themselves. Create a will, use insurance, get legal entities, and hire an
attorney, this way you can protect your ass—ets. And second: be great for your
community. It costs money to eat, and it costs money to feed other people. The more
you have the more you can do. If you have $100, you can feed 20 hungry people, but
if you have a million dollars, now, you can go out, and feed 200 thousand hungry
people. I'm not telling you to go out, and become a monk, and give up every one of
your possessions, I'm saying, if we all do just a little bit and do our part, we can
make the world a much better place.
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